Crypto Guides, Knowledge & Insights

Binance Once Planned to Evade US Scrutiny, New Texts and Documents Confirm

Last years fallout of several firms in the crypto space has led to increased scrutiny by the U.S. Securities and Exchange Commission (SEC) in the crypto industry. According to a Wall Street Journal report on March 5, the worlds largest crypto exchange, Binance, developed a plan in 2019 to avoid any regulatory scrutiny in the United States. The report highlights that a potential lawsuit from U.S. regulators, who had signaled a crackdown on unregulated offshore crypto firms, could have had severe consequences for Binances business and officers. Binance executives had warned their employees in a private chat in 2019 of the potential risk.　　According to internal documents, Binance had planned to create a separate entity in the US called Binance.US that would appear to be independent of Binance.com, but would actually be licensed by it and use its technology and brand. This strategy aimed to protect Binance.com from regulatory scrutiny by US authorities and exclude US users from its platform.　　According to WikiBIT research, the Wall Street Journal (WSJ) reported that Binance and Binance.US have been working much more closely than they had previously reported. According to interviews, messages, and documents reviewed by WSJ, these two entities have mixed staff and finances

2023-03-06Deep Dive

Why are Nigerians not turning to the e-Naira despite the naira scarcity?

By: Damian Okonkwo　　Despite the scarcity of cash in Nigeria, the adoption of the e-Naira digital currency is still low. The Central Bank of Nigeria (CBN) introduced the e-Naira in October 2022, hoping to address the challenges faced by Nigerians with the scarcity of the naira. However, despite the potential benefits of the e-Naira, many Nigerians are still hesitant to adopt the new digital currency.　　According to a recent report by Coindesk, Nigerians hesitancy to adopt the e-Naira can be attributed to several factors. One of the major reasons is the lack of awareness and education about the digital currency. Many Nigerians are still unfamiliar with the concept of digital currencies and are therefore skeptical about using them. The CBN needs to launch a massive education campaign to enlighten Nigerians about the e-Naira, its benefits, and how to use it.　　Another factor hindering the adoption of the e-Naira is the lack of infrastructure. The e-Naira is only accessible through mobile phones and other digital devices. Many Nigerians do not have access to these devices, which limits their ability to use the digital currency. The government needs to invest in infrastructure and provide access to digital devices to encourage more Nigerians to adopt the

2023-03-06Deep Dive

Major UK Banks Restrict Crypto Purchases as FCA Standardizes Crypto Industry

The Hongkong and Shanghai Banking Corporation (HSBC) and National Building Society have joined the growing list of mainstream UK banks that have restricted crypto purchases. Both banks have barred customers from using credit cards to buy crypto, while Nationwide has reduced the debit card transaction limit for crypto to £5,000. These decisions follow efforts by the UK Financial Conduct Authority (FCA) to standardize the digital asset industry and regulate the use of cryptocurrencies, which the FCA deems as “high risk”.　　The FCA‘s 82-page industry guideline, published on Wednesday, stipulates that all crypto companies must undergo a fresh assessment requirement, and their records must be updated at all times. The FCA also expects crypto asset businesses marketing to UK customers, including firms based overseas, to comply with these new regulations. However, crypto will not receive a new regulatory body in the UK, and it will be fully governed by the Financial and Market Services Act (2000). The Her Majesty’s Treasury wants the crypto industry and the traditional finance sector to operate on the same level playing field.　　Barclays, NatWest, Santander, and Lloyds have already implemented some form of restriction toward crypto. Previously, the restrictions were primarily targeted at Binance, which has been at

2023-03-06Deep Dive

Binance CEO Reiterates Support for Voyager Deal Despite SEC Objections

In December 2022, Binance US entered into an agreement to acquire Voyager Digital, but the SEC opposed the acquisition. The regulators lack of explanation and action on the matter was questioned by US Bankruptcy Judge Michael Wiles on Thursday.　　During the hearing, Wiles expressed his surprise at the regulators failure to take any concrete action, saying, “Deliberative is one thing, but what have you done？ If there are reasons to be concerned here, I need to hear specifics.” He also criticized the SECs inability to provide any meaningful information to the court.　　In response to a tweet by CryptoPotato regarding the matter, Changpeng Zhao, the CEO of Binance, tweeted, “Maybe we should pull out” However, he later clarified that the company remains committed to the Voyager deal and returning funds to users as quickly as possible.　　Despite recent headlines suggesting that Zhao was contemplating backing out of the Voyager deal due to US regulatory scrutiny, a Binance spokesperson has dismissed these claims, confirming the companys commitment to the transaction.　　The SECs objection to the Voyager deal is part of a wider crackdown on cryptocurrency exchanges in the US. In recent years, the regulator has increased its scrutiny of the cryptocurrency industry, particularly with regard

2023-03-06Deep Dive

Elon Musk Latest Hint Delights This AI Token’s Supporters

The recent news of Elon Musks discussions with AI researchers has once again caught the attention of the crypto market, with some interpreting his latest tweet as a subtle hint about the market. While its possible that Musks tweet has nothing to do with cryptocurrencies, his association with Dogecoin ($DOGE) adds to the speculation. In recent times, AI tokens have gained significant attention, with the rapid success of ChatGPT and the hype surrounding AI-related products.　　The success of ChatGPT has propelled artificial intelligence-related cryptocurrencies such as The Graph (GRT), SingularityNET (AGIX), and Fetch.ai (FET) to high value in recent times. As a result, the cryptocurrency market has become increasingly bullish on cryptocurrencies with AI-based use cases.　　Elon Musk AI Plans　　Musks recent statement that he used to be involved in crypto but is now interested in AI has fueled speculation that he may be interested in AI-related cryptocurrency tokens. In addition, Musks latest tweet, which references “In The Singularity,” has piqued the interest of the crypto market, although the significance of the tweet remains unclear. This has led to further speculation about the potential for SingularityNET (AGIX), an AI-focused project, to gain Musks attention.　　As a result, the price of AGIX token experienced a

2023-03-05Deep Dive

Binance Reveals Date For Next LUNC Burn; Terra Classic Price Pump Ahead?

The Terra Classic community witnessed Binance, the worlds biggest cryptocurrency exchange, complete its 7th round of LUNC token burn, which removed about 8.9 billion tokens from circulation. With this event, Binance reintroduced its LUNC burn mechanism officially to the community.　　Binances Next LUNC Burn　　Binance recently conducted its 7th batch of LUNC token burn, which involved eliminating around 8.9 billion tokens from circulation. The number of tokens burnt was determined based on the fees accumulated from November 30, 2022, to February 27, 2023. Prior to the burn, Binance converted all collected fees in USDT, BUSD, or BNB into LUNC. To make the burn process more efficient and cost-effective, the crypto exchange switched from weekly to monthly burns in November. Currently, Binance is the biggest LUNC token burner in the crypto market, contributing over 50% of the total burn.　　Following the successful LUNC burn by Binance, the Terra community is eagerly anticipating the next major burn. According to an official announcement by Binance and a tweet from ClassyCrypto, a prominent Terra Classic validator, the next burn could take place on April 2.　　Terra Classic (LUNC) Price Action　　Despite Binance burning 48.5 billion LUNC tokens, there is still a massive 5.9 trillion LUNC tokens in circulation. The

2023-03-05Deep Dive

DeFi Startup Wants To Help Traders Hedge Uniswap Impermanent Loss

MEV Capital, an institutional investment manager focusing on DeFi, plans to take advantage of short-to-medium-term arbitrage opportunities between on- and off-chain crypto assets. The company manages $32 million in assets.　　To protect against downside risks on Uniswap yields, MEV Capital has created a new impermanent loss hedging product, which is believed to be the first of its kind due to its unique structure. The product is currently being presented to potential limited partners through separately managed accounts (SMAs).　　MEV Capital, a DeFi-focused institutional investment manager, has introduced a new product aimed at hedging impermanent loss on Uniswap yields, which is said to be the first of its kind. The strategy involves exotic, short-dated crypto options designed to generate returns on DeFi yields via Uni v3 while providing downside protection. MEV has partnered with OrBit Markets, a Singapore-based company specializing in sector derivatives and structured products, as a counterparty.　　Impermanent loss in a DeFi context is the risk of the cost of running a Uniswap pool falling below the total fees generated. Numerous competitors have launched their own impermanent loss strategies, but MEV claims to be the first to use short-dated crypto options rather than perpetual swaps, which do not provide complete coverage. MEV

2023-03-04Deep Dive

Tether And Bitfinex Used Fake Documents, Shell Companies To Get Banking Access

Tether, the issuer of the worlds largest stablecoin, USDT, has been embroiled in controversies and allegations since the early days of the cryptocurrency industry. In the latest development, a report by WSJ alleges that Tether utilized forged documents and shell companies to gain access to banking services during a time when the company faced difficulties accessing the global banking system. This represents a significant setback for the stablecoin issuer.　　Tethers Illicit Activities　　　　In 2018, Tether and Bitfinex, which is among the biggest cryptocurrency exchanges globally, encountered a precarious situation when they were unable to access the traditional banking system. As a result, the $71 billion stablecoin managed by Tether and its sister business were at risk, posing an existential threat to their operations.　　Based on the report from WSJ, a collection of emails and documents were examined, which showed that Tether and its related businesses had made sustained attempts to maintain banking access, despite losing access to traditional banks in 2018. The companies used various methods to conceal their true identities, including operating under the guise of other entities or individuals. However, these efforts were not without difficulties, such as the seizure of millions of dollars in assets and connections to a group

2023-03-04Deep Dive

TradingView And Bitget Collaborate To Enable Crypto Derivatives Trading

Bitget, a well-known exchange for cryptocurrency derivatives and copy trading platform, has announced that it will work directly with TradingView, a well-known charting and trading platform. With this integration, users will be able to trade cryptocurrencies without leaving the TradingView interface. This will make Bitget more useful. So, traders can make better decisions and enjoy the best protection and security Bitget has to offer.　　TradingView is a full charting and trading platform that lets users use different tools to do both technical and fundamental analysis. Also, it has the largest social platform for investors, which lets traders talk to millions of other active traders around the world. With this integration, Bitget users can access a number of advanced analysis tools, such as charting tools, real-time market data, and technical indicators. They can also learn from TradingViews active community about new strategies that have been tried and tested by millions of traders.　　Also, Bitget users can now trade perpetual futures directly from the TradingView interface. This gives them more options and makes it easier for them to trade on the go. This integration speeds up the trading process and reduces risks significantly by making it easy to get up-to-date market information and help

2023-03-03Deep Dive

Robinhood's Wallet Can Now Be Used By IOS Customers Worldwide

Robinhood, the commission-free stock and cryptocurrency trading app, has formally released its self-custody wallet to all 1 million+ iOS customers in its queue. The Robinhood Wallet is now accessible in over 130 countries and can be purchased from the IOS App Store. Users can make up to 5 USDC after moving $10 of crypto from Robinhood Crypto or 1 USDC after depositing $10 from another wallet or exchange for a limited period.　　According to Johann Kerbrat, CEO of Robinhood Crypto, the comments for Robinhood Wallet have been highly favorable since the test debut. Customers have praised the apps accessibility and ease of use, as well as the ability to self-custody their digital assets and exchange them with no network costs on Polygon. Robinhood rapidly introduced Ethereum support, realizing that customers want more currencies on more networks. Despite the turbulent few months in the crypto sector, Robinhood stays dedicated to its goal of becoming the most trustworthy, low-cost, and simple-to-use on-ramp to crypto.Introducing Robinhood Wallet: The User-Friendly Web3 Wallet with Powerful Features　　Robinhood Wallet is a multi-chain, self-custody Web3 wallet that enables users to own and exchange cryptocurrency while also connecting to a variety of autonomous applications (dapps). To support the next wave

2023-03-03Deep Dive

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